Alex Roepers on two deep-value special situations: $DCH and $NOMD

Alex Roepers of Atlantic Investment Management lays out two deeply cheap special situations: Dauch (DCH) and Nomad Foods (NOMD). In both, management is sending "dark arts" signals (an aggressive CEO payout struck well above the current price, heavy insider buying) that point to an inflection the market hasn't paid for yet. We dig into the $300M merger synergies at Dauch, the auto-cycle and leverage risk, the governance red flags, the private-label threat to Nomad's frozen-food brands, and whether the European discount on both is real or just doldrums. This episode is sponsored by AlphaSense. Join Andrew, Dave Wang of Wall Street Prompts, and Ben Collins of AlphaSense for a webinar breaking down the modern AI stack for investors: where horizontal platforms, agentic workflows, and finance-specific tools each actually fit in a real research process. Recording June 16, live June 25. Register here: https://www.alpha-sense.com/resources... Disclosure: long DCH and NOMD Chapters: 0:00 Two cheap special situations and the "dark arts" setup 1:10 Sponsor: AlphaSense and the AI-stack-for-investors webinar 2:29 Alex Roepers, Atlantic Investment Management 3:04 Dauch ($DCH): the GKN, Melrose and Dowlais backstory 7:05 Why Atlantic made $DCH a core position at ~$6 9:03 The governance knock: a company named after a sub-1% CEO 13:42 Dark arts: the PSU grant that only pays above $12 15:11 Underwriting the $300M merger synergies 18:13 Leverage, capital allocation and the path to buybacks 24:42 The auto cycle and why 5x free cash flow caps the downside 29:12 Nomad Foods ($NOMD): the frozen-food bull case 33:14 Nomad by the numbers: 5.5x earnings, 7% yield 35:39 The bear case: private label, Aldi and a new CEO 39:21 Would Martin Franklin ever sell? 41:22 Dividend or buyback at these levels? 43:00 Is Franklin distracted by APi Group? 45:27 The kitchen-sink reset and a fall investor day 47:37 "Addback city": cleaning up the earnings number 50:02 The European discount: real or imagined? Links: Yet Another Value Blog - https://www.yetanothervalueblog.com See our legal disclaimer here: https://www.yetanothervalueblog.com/p... Production and editing by The Podcast Consultant - https://thepodcastconsultant.com/